This document discusses ethical decision making for leaders. It begins by noting the challenges leaders face in balancing profitability and ethics. It then examines factors that can influence ethical behavior like personal characteristics and traits. The document evaluates different approaches to decision making and provides an example of potential groupthink. It also discusses predictors of leadership abilities. Finally, it concludes that business strategies and ethics do not need to be at odds, and that a leader's actions should demonstrate ethical compliance across all areas of business.

1. Decisions and Ethics
Northcentral University
Deborah Adams

2. Introduction
Leaders are expected to be both profitably effective while remaining within
ethical and legal guidelines. Some may feel that in current marketplaces this
requirement is like walking a tightrope without a circus net. There are
historical cases where leaders have either risen or fallen to the demands of
doing everything right and still make a profit. In the Information Age
demands are more expanded while the traditional expectations of doing
good, taking responsibility, and causing no harm to others seems blurred in
some situations.
Throughout this presentation terms, and case examples will be shown for an
understanding of how ethical decisions making may be easier to make by
some over others.
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3. Ethical Decisions
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The key to
ethics is good
behavior!
 The demonstration of proper conduct throughout all relationships is the
baseline for ethical leadership. Leaders who are ethical behave properly through
two-way communications, support, and comprehensive decision-making.
Through promotion and reinforcement leaders inform of both the benefits of
good behavior and the consequences of bad behavior. Clear expectations along
with balanced accountability elevates ethical leaders above marginal leaders.
Ethical leaders teach by doing setting examples by demonstrating good conduct
in their personal and professional affairs.
 There is not much noted by researchers on why some leaders behave ethically
while others behave unethically. There has been writings on the prediction of
likelihood for ethical behavior by leaders based upon personal characteristics.
Identifying traits, backgrounds is said to possibly assist in predicting, developing,
and reinforcing ethical leaders.
(Walumbwa & Schaubroeck, 2009)

4. Evaluate & Compare
Decisions
 Critical thinking/questions foster
decisions. Questioning made
through approaches:
(1) Dogmatic Absolutism - every
question has only one correct
answer.
(2) Subjective Relativism – all
questions are reduced to matters of
subjectiveness with no correct or
incorrect answer just differences of
opinions.
(Elder & Paul, 2006)
Decision-making
 Groupthink
Example: Kent State University Board
of Trustees refused to reconsider
their decision to build a physical
education and recreation facility on
part of the site where KSU students
and Ohio National Guardsmen had a
fatal confrontation over the
American involvement in the
Vietnam War. The trustees refused
to motion for a vote even after
involvement of political and legal
agencies and hundreds of thousands
of lost dollars by the University.
(Hensley & Griffin, 1986)
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5. Evaluate & Compare
Decision-making
 There is said to be no specific trait
which distinguishes leaders from non-
leaders, according to trait theories.
Some say the reviews have been
misinterpreted and that there are
theoretical and methodological reasons
for the reconsideration of relations
between the traits of potential leaders
and the tendency to be viewed as a
leader.
 Here are the numbers…
88% of 196 relations between intelligence
and leadership are positive.
92 of the 196 relations are significant.
99% of significant relations are in the
positive direction. (Lord, De Vader & Alliger, 1986)
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www.umass.edu

6. Decisions
There are existing and unclear conditions in ethical decision making for
stakeholders, common interests, and overall values are conflicting. Most
leaders engage in decision making to some degree that affect lives or well-
being of others. This is what ethical decision making involves it is an act or
response that has the potential of producing serious consequences for others
within the realms of health, safety, and or welfare. (Lord, De Vader & Alliger, 1986)
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Main. da. standford.edu

7. Interactionist model defines ethical decision making within an organization
through individual interactions and each components of a situation. Individuals
react to ethical dilemmas with the perceptions from their intellectual stages of
development, which guides the decision process along the lines of what is
deemed either right or wrong for a particular situation. (Lord, De Vader & Alliger, 1986)
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Socrates.Berkeley.edu

8. The Strategies…
 IT operates in survival mode with
agendas of the board and executive
officers increasingly plagued with
compliance, merger/acquisitions, and
business strategy issues.
 Today’s enterprises use wide IT systems
with demands to “think global and act
local”, which requires a combination of
knowledge by executives in areas of
organizational change and new
technology.
 Most strategic issues are linked to IT
directly or remotely. Behaving ethically is
on the same critical path as IT. (Earl & Feeny, 2000)
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www.springer.com

9. 4 Strategies operating in
the Information Age The Hypocrite
Believes IT is
strategic but acts to
the contrary
The Waverer Accepts
IT’s importance but
does not make it a
priority
The Atheist Believes
IT has little value,
irrelevant to
competitiveness
The Zealot Authority
on the practice of IT
being strategically
important
The Agnostic Must
be repeatedly
convinced of IT’s
importance
The Monarch Not
center stage but
appoints the best
CIO
The Believer Personal
behavior
demonstrates belief
in IT’s advantage
Archetypes for CEO’s
operating in the Information
Age:
1. The Hypocrite
2. The Waverer
3. The Atheist
4. The Zealot
5. The Agnostic
6. The Monarch
7. The Believer
(Earl & Feeny, 2000)
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10. CEOs Operating in the Information Age
Sr. Colin Marshall
– British Airlines
Toshifumi Suzuki –
Seven Eleven Japan
Jomei Chang –
Vitria Technology
Michael Dell - DellJack Welch – GE
John Browne – BP
Peter Schou –
Lan/Spar Banks
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11. Microsoft Antitrust Court Case
Federal Appeals Microsoft Antitrust Case
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12. “
”
Microsoft invested a tremendous amount of resources to
make very complex intertwining of code for the purpose
really of becoming an anti-competitive barrier to other
products being able to be part of the overall user
experience.
Organizational strategies and ethical decision-making
What is considered fair play in the marketplace with regards to antitrust compliance or
violations is sometimes a matter for the court to decide. In the case of Microsoft the court
questioned weather the case was more about one monopolist fighting to replace another in
a battle over the greatest and current monopoly status.
(Associated Press, 2001)
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13. Conclusion
Executives are faces with balancing the best interests of the Board of
Directors they serve with equal attention to corporate governance of social
responsibility to society, and compliance of all regulations.
Most business strategies and missions are similar with regards to
managing/increasing profits and market share, expanding competitive edge
in the market, and keeping a positive corporate image.
Ethics and business strategies are not mutually exclusive. A CEO’s actions
must demonstrate ethical compliance across all areas of business and
incorporated throughout all strategies of business. The company’s leader is
its public figure who is charged with making positive and methodical
decisions that protect and expand the company and its relationships.
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14. References
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Associated Press. (2001). USA: Microsoft Anti trust Court Case Wrap. Retrieved from: http://ebscovideos.ebscohost.com/v/102364829/usa-microsoft-antitrust-
court-case-wrap.htm
Earl, M. & Feeny, D. (2000). How to be a CEO for the information age. Sloan Management Review. 41(2), Retrieved from
https://cb.hbsp.harvard.edu/cbmp/content/42841419
Elder, L., & Paul, R. (2006). The art of asking essential questions. The Foundation for Critical Thinking. www.criticalthinking.org.
Hensley, T. R., & Griffin, G. W. (1986). Victims of groupthink: The Kent State University board of trustees and the 1977 gymnasium controversy. The Journal of
Conflict Resolution (1986-1998), 30(3), 497. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/236093532?accountid=28180
Lord, R. G., De Vader, C. L., & Alliger, G. M. (1986). A meta-analysis of the relation between personality traits and leadership perceptions: An application of
validity generalization procedures. Journal of Applied Psychology, 71(3), 402-410. doi:10.1037/0021-9010.71.3.402
Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601-617.
doi:10.5465/AMR.1986.4306235
Walumbwa, F. O., & Schaubroeck, J. (2009). Leader personality traits and employee voice behavior: Mediating roles of ethical leadership and work group
psychological safety. Journal of Applied Psychology, 94(5), 1275-1286. doi:10.1037/a0015848